Bearish Bursts Strategy

This is a discussion of the "Bearish Bursts" strategy. See the best combination of moving averages and RSI that have outperformed the market over 10-, 5-, 3-, 2-, and 1-year, as well as during the Great Recession with a bearish strategy.

Overview

• Long put
• 1 leg

Bearish Bursts Strategy Settings

Bearish Bursts Open Conditions:

• Stock crossed down through the 200-day SMA
• Stock below 50-day SMA
• 20-day RSI is above 30

Details on Options TradeMachine is Selecting for Bearish Bursts Strategy:

• 1x long 40 delta put near 14 days to expiration

Earnings Handling for Bearish Bursts Strategy:

• Never Trade Earnings

Bearish Bursts Close Conditions:

• Gains above 40%
• Losses above 60%
• Options reach expiration

Open next trade for Bearish Bursts:

• At Normal Time